The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1887-10-19
Mr. Garrett Resigns.

B.trtNoRE. October I2--For twenty-uine
YEAR. the name of Garrett has been al the
head of the Baltimore and Ohio Railroad.
Today il disappeared When John w Gar
r,.tt look hold of The corleroiion he found il
shaky and unproduciiye- He pulled il up by
his management until IT paid 10 per cent.
dividends aud its stock sold at nearly 500
rer share. To-day the dividend for the main
stem was passed. and the stock sold al sios
and may 20 10 par before the week is out.
The greatest surprise of the day was the pas
sing of the dividend. AT least 3 per cent.
was expected, and quiet assurances to that
effect have alone kept the price as high as
100 and l30. The news caused much sorrow
here as a great many incomes are depend
eui upon H. The city loses 50 extensively
that floating debt of $4,000 viii be crea-
ted and the city taxes will have TO De in
creased six and half cents on the 500.
This too. when only five years ago the city
could tave sold stock at 100 per cent ad-
vance. The Johns Hopkins University los
e sIsOo00. OF more than one-haif Of its in
come and the institution will have TO fall
back on lis reserve fund for current expen-
ses
There is a feeling here that the full amount
of the company Indebtedness is not yet
known, and that developments will disclose
many more millions than have been ac-
knowledeed The argument is made that
the amount received from the recent sale of
the express and the telegraph ought to more
than cover the deb;s reported, and this years
revenue. being the largest the company ever
had, ought to furnish enough earnings for
small dividend As no dividend has been
forthcoming these people argde tina, the cash
Is held back TO liquidate Indebtedness. Ii IS
said that Mr.. Garrett will take an active in
terest in the road as one of the dinc,ors.
well-known banker said this afternoon
that there Is much more Of the Baltimore
and Ohio stock held in small amounts than
is generally supposed, and sale of stock
owned by the state of Maryland. the city OF
Baltimore and a not inoonsidereble number
Of private stockholders might result in the
control of the road passing from its present
owners and under that of foreign parties.
Outside of the holdings Of the Johns Hop
kins estate. which is 1906 shares, the Gar
retts $1,000 shares, the GFeggs and a few 9TH
ers having a total Of $4,000 shares, there are
10000 shares. This, however, includes the
holdings of the state and city, both of which
il Is more than likely there will be a strong
disposition TO sell if there is TO be loss Of
revenue for any considerable length of time.
Ia this contingency there is nothing to pre-
vent Jay Gould or any other syndicate Of
capitalists from eventually getting control
of the great Baltimore and Ohio Road.
PRESIDENT GArRlrT's RESIGNATION.
AT the meeting OF The directors of the
company to-day Robert Garrett presented his
resignation as president and ii was accepted.
The vacancy will not be filed until the an
nual meeting Of the stockholders on Novem-
ber p, aud in the meantime the duties Of
the presidency will be discharged by Mr..
William r. Burns, senior member of the
Board Of Directors. Mr.. CARROTS letter was
as fallows
'' To the Directors of the Baltimore and
Ohio Railroad ompany-,ientlemen Ii is
well known TO many of you that il has been
for some time my fixed desire and intention
to withdraw, when / properly could, from
the labors which have been imposed upon
me by my official position as president of TIE
Baltimore and Ohio Railroad Company. But
you are also aware, the policy and underIa-
kings of the company, which | necessarily
assumed at the time accepted the presiden-
cy, were such as 10 render it improper for
me with due regard To the interests invol-
we'd, To withdraw from their prosecution.
Now, however, the arrangements have
been made which. as | hope and believe,
will secure many OF the ends for which We
have so long struggled. and the business and
finances Of the company being in sound
and satisfactory condition, ! am in position
to tender you, as ! do hereby, my resigna
ton as president of the company.
thank you for the courtesy and consider
alton which you have uniformly extended
To me, and trust you viii be able within a
brief period TO fix upon proper person to
whom ! may surrender the trust with which
you have honored me
! After some remarks complimentary 10 Mr.
/ Garrett, the board passed this resolution
Resoiued, That in accepting the resignation
/ by Mr. Robert Garrett of the presidency of
this company, We do SO with deep regret.
] 1.
withdraw from the exacting duties Of the Of
fee and how imperative up to this time has
been the necessity that he should not do 20.
Many Of the measures Of policy whose com
pletion was undertaken when he became
president have been pursued with difficulty
and peril until their success is no longer
doubtful. Weappreciate the fact that this
result has been largely due to his courage
and unselfish devotion to the companys in
ierests and congratulate him upon the faci
that in leaving the office at this time he not
only does 50 with affection and respect of all
those connected with the company. but with
recognition by all those acquainted with ii
Of how great have been the services he Ia,
rendered.
THE TELBGRAPHIc DEAL APPROVED.
The contract for the transfer of the Balti.
more and Ohio Telegraph TO the Western
Union Company was approved.
A resolution was adopted That no dividend
be declared from the earnings of the main
stem for the past six months, and declaring
a dividend Of per cent from the earnings %
the Washington branch. The arrangement.
now in progress with the syndicate to relieve
the road of lis indebtedness were presented
yesterday aud entirely approved SO far az
they have progressed. All the legal papen
are in preparation. and il is expected they
will be laid before the board at the annua
meeting in November. Mr.. Garrett was elec.
ted director in the company in place o
John Spear Nicholas. deceased.
A Train Telescoped.
KANSAS CRY, Mo, Oct. l4.-An accom-
modation train on the Missouri Pacific rail
road, consisting of four passenger coaches